Outlook on Africa’s Gaming Industry 2020-2025 – Mobile Gaming Will Hold a Major Market Share
The “Africa Gaming Market – Growth, Trends, and Forecasts (2020-2025)” report has been added to ResearchAndMarkets.com’s offering.
The gaming industry is expected to register a CAGR of 12% during the forecast period (2020-2025). The most recent trend is the growing availability and popularity of multi-functional gaming console, which is emerging in the market and helping in growing the market of video games in the region.
Africa is the only region in the world where the youth population is increasing. By 2050 Africa’s young people, i.e., those aged between 0 and 24 years old, will increase by nearly 50 percent. Africa will have the most significant number of young people. Africa’s youth are critical to the continent’s future when it comes to mobile and gaming as a whole.
African studios are making new inroads by launching original locally produced content on Netflix. Several local content productions have been nominated for several global awards, including the Oscars. The Annecy Festival in 2020 will be focusing on animation from Africa. In addition to this, government initiatives in the region are adopting gaming solutions for educational purposes. Developments such as these will provide opportunities for the gaming industry in the area.
During the lockdown, the Entertainment streaming and gaming industries are thriving. The global suspension or cancellation of most sporting events has left punters without live games to bet on, aside from re-runs of filmed matches. The knock-on effect is that sports betting, which accounts for most of the industry’s revenue, has crashed to almost nil.
While the traditional gambling industry is facing unparalleled losses, online gambling sites have reported a surge in activity since the national lockdown came into effect on 27 March 2020. While online casinos worldwide have reported a sharp increase in gambling, as lockdown periods are extended, and financial stresses intensify, people may become increasingly hesitant to spend money on non-essential pastimes, such as gambling.
Key Market Trends
Mobile Gaming Segment Expected to Have Major Market Share
- Mobile gaming generates close to half of the revenue that the gaming industry gets annually. More than 200 million Africans are below 35 years, and this figure might double in a decade. Africa has a huge market for gaming and smartphone companies.
- Mobile gaming is gaining popularity in remote parts of Africa. For example, more than 290 million people in North Africa use mobile phones. The mobile market in the region generates $90 billion annually.
- One of the major drivers for the growth of mobile gaming is the potential to spawn a massive real-money gaming industry around the continent. Mobile tech spreads around the continent, large swaths of Africa are also paving the way for legal betting and gaming.
- However, acceleration in network rollouts by mobile operators in Sub-Saharan Africa has been a vital driver of the reduction in the coverage gap. Infrastructure deployment in Sub-Saharan Africa increased 3G coverage from 63% in 2017 to 70% in 2018, extending access to more than 80 million people. 3.3 billion people live in areas covered by mobile broadband networks but do not use mobile internet – this usage gap’ is more than four times greater than the coverage gap. Such factors might harm gaming companies operating in the region.
Issues Such as Piracy, Laws & Regulations, and Concerns Relating to Fraud During Gaming Transactions will Impact the Growth of the Market
- Most African countries have gaming commissions and laws that regulate gambling. South Africa has clear gaming laws and regulations. It was the first country to create gambling regulation in the continent. Also, online casinos are popular in the country.
- In South Africa, several legislative attempts to further restrict online gambling and payment transactions of unlicensed operators have been postponed in recent years. However, some legislators and regulators at the provincial level have called for a less restrictive regime.
- There is currently an ongoing political and religious debate on the perceived high number of minors accessing gambling. As a result, in May 2019, the minister of finance urged the National Gaming Board (NGB) to stop issuing gaming and betting licenses immediately. The government restricted gambling advertising as of January 2019. Additional measures to ensure responsible gambling and revenue collection to the state budget are on the list.
- A new advocacy organization designed to collaborate, coordinate, partner, build and sustain the growth of esports on the continent has been formed. ESFA or The Esports Federation of Africa is established by a community of both private esports entities, and national federations. WESCO affiliates it. With the launch of the ESFA, African gamers now have a voice, an advocate, an organization with grassroots developments of players at its core. These will provide better opportunities and therefore strengthen the local market in the region.
The gaming market is fragmented as the demand for online games, and increasing penetration of mobile applications across the region will help attract new players in this market over the next few years. Recent developments in the market are:
- In May 2020, Sony announced new PlayStation Studios branding for its first-party PS5 games. Sony will be using the new PlayStation Studios brand for its first-party exclusives going forward as a way to let customers know that a game comes from one of Sony’s in-house development teams.
- In August 2019, Konami Digital Entertainment BV announced that the mobile version of e-Football PES 2020 would be released in October, and it represents a complete overhaul of the current PES 2019 mobile game. The latest major update to the PES Mobile series, which celebrated over 200 million downloads earlier this year, brings many of the critical features and licenses already announced for e-Football PES 2020 on PC and console.
IPO Bound Yudiz Solutions Limited gets DRHP Nod
IPO-bound Yudiz Solutions Limited, a blockchain, AI and gaming-focused enterprise technology company has received an NSE approval for an SME IPO. With this approval, the company is set to invest approximately 80 million INR to set up a gaming studio and a multi-gaming platform. The game studio will aim to produce over 40 games in a year.
Yudiz Solutions Limited, which is already known to develop apps, will now be the first game developers to be publicly listed and have its own publishing platform.
* The DRHP approval makes it the first game developers in India to be publicly listed
* The gaming studio will aim to produce over 40 games annually
* Will be the first game developers to be publicly listed
The new Yudiz Solutions Limited game studio will focus on creating high-quality games for multiple platforms. These games will leverage Yudiz Solutions Limited’s cutting-edge technology solutions and in-house expertise to design and develop the games. They will also develop games for other publishers and will also allow other developers to publish games on their new publishing platform. This will be the only gaming company to develop and publish their own and others’ games as well.
“The new business ventures will enable sectoral growth, provide us with the necessary resources to drive innovation, expand our game portfolio, elevate the gaming experience and develop gamer communities,” the Chairman and Director for Yudiz Solutions Limited, Bharat Patel, said. “It will also enable us to forge strategic partnerships, attract top talent and cement our position as strong contenders in the space.”
With an EBITDA of 21.77% for FY 22-23 and a CAGR of 42.34% for the past three years, Yudiz Solutions Limited also had a PAT of INR 2.75 CR in FY 22-23. With the recently approved DRHP the company will offload a public issue consisting of a fresh 27,17,600 equity shares.
Yudiz Solutions Limited is headquartered in Ahmedabad and recognized as a global IT service providing solutions in AI/ML, AR/VR and IoT as well as blockchain, mobile app and web development across North America, Europe and Asia. Yudiz Solutions Limited is set to disrupt the market with its innovative solutions and products. MPL, Zydus, RR Kabel, IRM Energy, SportsBuzz are some of its clients.
KingMakers goes live with EveryMatrix CasinoEngine
KingMakers’ betting brand BetKing, has gone live with CasinoEngine, giving Nigerian players access to the industry’s largest casino content library through a single integration.
EveryMatrix’s iGaming platform will aim to significantly grow BetKing into a world-class, multi vertical, digital entertainment experience with access to an ever-growing portfolio of thousands of best performing games.
BetKing will also integrate JackpotEngine and BonusEngine to further boost the gaming experience through flexible and configurable jackpot customisation and a variety of industry-leading player reward and bonus management features.
Nigeria’s total onshore online betting and gaming gross win for 2023 is estimated to be €560 million, according to H2 Gambling Capital, with the onshore market predicted to double in three years.
Stian Enger, Head of CasinoEngine, EveryMatrix, said: “The sky’s the limit in terms of potential for BetKing and we’re very excited to go live and accelerate the brand’s casino growth in the months and years to come.
“The brand has leading sports betting market share and I’m confident that in a short space of time the same will be said for casino thanks to the power of CasinoEngine and its best-in-class acquisition and retention capabilities.”
Lauren Holder, Head of Gaming at KingMakers, said: “From signing the deal six months ago to go live has been a very smooth process and it’s been a pleasure working with our partners at EveryMatrix.
“The Nigerian and wider iGaming African market is an area we believe has huge promise and, together with EveryMatrix’s leading productivity platform and the wide variety of flexible content options and revenue boosting functionality it offers, we believe the opportunities are endless.”
IAGR Opens Registrations for 2023 Conference in Botswana
The International Association of Gaming Regulator (IAGR) has opened registrations for its annual conference, taking place in Gaborone, Botswana, from 16 to 19 October.
With the theme “Bringing ideas together: The exchange of excellence and innovation in regulatory practice,” this year’s event is hosted by the Botswana Gambling Authority.
“IAGR 2023 is a four-day event for IAGR members and industry thought leaders, bringing together regulators, industry leaders, and experts to share ideas and shape the future of gaming regulation worldwide,” Jason Lane, President of IAGR, said.
The conference follows last year’s sell-out event in Melbourne, Australia.
“We are honoured to host IAGR 2023 in Botswana and look forward to welcoming our global peers from around the world to our beautiful country,” Peter Kesitilwe, CEO of the Botswana Gambling Authority, said.
“We’re committed to ensuring that all participants have a rewarding and memorable experience.”
IAGR has announced two speakers and topics for the conference, with more to follow in the coming weeks.
- Earle G. Hall – Chairman, International Gaming Standards Association & CEO, AXES.ai: “Artificial intelligence will transform our industry”
- Andrew Rhodes – CEO, United Kingdom Gambling Commission: “Impact of the Gambling Act Review”
Early-bird pricing is available until 15 June.
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